Suppose That Many Corporations Begin Issuing New Bonds

question 175

Multiple Choice

Suppose that many corporations begin issuing new bonds.Everything else being equal, what is most likely to happen to the interest rate?

• A)It will increase.
• B)It will decrease.
• C)It will not change.
• D)It will vary according to a random walk.

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Definitions:

Operant Conditioning

A training approach in which a behavior's force is adjusted by either reinforcing or punishing.

Lack of Generosity

A behavior or attitude characterized by unwillingness or hesitation to share with others or contribute to their well-being.

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often used in behavior modification strategies.

Reinforcement

In behavioral psychology, a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.